Novartis Plots Strategic Price Adjustments in US as Trump's MFN Deadline Looms

In a preemptive and strategically significant move, pharmaceutical giant Novartis is reportedly weighing options to cut prices on some of its key medications within the United States. This consideration comes as the industry braces for a potential executive order from President Donald Trump, dubbed 'most-favored-nation' (MFN) drug pricing, which could dramatically reshape the pharmaceutical landscape before the critical November election.

The MFN policy, a cornerstone of the Trump administration's efforts to curb healthcare costs, aims to link U.S.

drug prices to the significantly lower rates found in other developed nations. This controversial proposal has sent ripples through the pharmaceutical sector, forcing companies like Novartis to meticulously evaluate their market strategies and potential financial impacts. The looming threat of this order has put many drugmakers on high alert, compelling them to adapt to an increasingly unpredictable political climate.

Novartis CEO Vas Narasimhan has indicated the company's proactive stance, acknowledging the need to navigate this challenging environment effectively.

While specific drugs for price adjustments haven't been publicly named, the focus is likely on high-profile, innovative medicines that command substantial market share. Experts suggest that blockbuster drugs such as Entresto for heart failure and Zolgensma for spinal muscular atrophy, both pivotal to Novartis's portfolio, could be among those under review for price modifications, given their significant value and visibility.

This strategic contemplation by Novartis is not an isolated incident.

Across the pharmaceutical industry, companies are undoubtedly engaging in similar high-stakes preparations, exploring various scenarios to mitigate the potential effects of the MFN rule. Drugmakers have consistently voiced strong opposition to the MFN concept, arguing that such policies could stifle critical innovation, curtail investment in research and development, and ultimately limit access to groundbreaking new therapies for patients.

President Trump has long championed the cause of lower drug prices, making it a central tenet of his healthcare agenda.

With the presidential election drawing nearer, the pressure to deliver on this promise is intensifying, making the enactment of the 'most-favored-nation' executive order a tangible possibility. Novartis's proactive approach underscores the significant influence of political will on corporate strategy, highlighting a pivotal moment for the future of drug pricing in America.